Hospitality faces difficult times

The UK hospitality industry experienced a turbulent final quarter of 2024, with an average of more than eight venues shutting their doors each day, according to recent data.

A hospitality sector report reveals that nearly 750 hospitality venues ceased trading between October and December, underscoring the mounting financial pressures within the sector.

Despite this concerning trend, the total number of hospitality outlets in operation at the end of 2024 stood at 99,120, showing a marginal increase compared to 99,113 in December 2023. However, industry analysts caution that this apparent stability is largely due to ownership changes and strategic shifts in trading models rather than genuine growth.

The report also highlights the ongoing volatility within the sector, with 4,078 closures and 4,085 openings recorded throughout 2024—an average turnover rate of 11 venues per day. Independent food-led establishments showed modest growth of 1%, while drink-led venues expanded by 0.5%, indicating some resilience in niche markets.

However, the overall outlook remains challenging, with predictions suggesting that if the current rate of closures persists, the UK could witness a net loss of nearly 3,000 hospitality businesses by the end of 2025. Industry leaders have voiced their concerns, warning that rising costs, economic uncertainty, and policy decisions—including tax burdens introduced in the autumn Budget—are placing further strain on operators.